The following are extracts from the financial records of COF (Pty) Ltd for the year ended30 June 2021:Extract from the statement of profit or loss and other comprehensive incomefor the year ended 30 June 202130 June 2021RRevenue from sale of goods920 000Cost of sales490 000Profit on sale of non-current assets31 000Commission income23 000Audit fees84 000Depreciation72 000Interest expense (finance cost)20 000Income tax expense87 000Profit for the year (after tax)123 000 Extract from the statement of financial position as at 30 June 202130 June 202130 June 2020RRInventories302 000292 000Trade receivables690 000720 000Trade payables400 000385 000Taxation payable75 00060 000Prepaid expenses8 0002 000Accrued expenses84 00088 000Required:Prepare only the "Cash generated by operations" section of the statement of cash flowsfor the year ended 30 June 2021, using the indirect method

Cash flows from operating activities is an important section of cash flows statement for the…

Extract from the statement of financial position as at 30 June 2021 30 June 2021 30 June 2020 R R Inventories 302 000 292 000 Trade receivables 690 000 720 000 Trade payables 400 000 385 000 Taxation payable 75 000 60 000 Prepaid expenses 8 000 2 000 Accrued expenses 84 000 88 000 Required: Prepare only the “Cash generated by operations" section of the statement of cash flows for the year ended 30 June 2021, using the indirect method

Extract from the statement of financial position as at 30 June 2021 30 June 2021 30 June 2020 R R Inventories 302 000 292 000 Trade receivables 690 000 720 000 Trade payables 400 000 385 000 Taxation payable 75 000 60 000 Prepaid expenses 8 000 2 000 Accrued expenses 84 000 88 000 Required: Prepare only the “Cash generated by operations" section of the statement of cash flows for the year ended 30 June 2021, using the indirect method

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter21: The Statement Of Cash Flows

Section: Chapter Questions

Problem 6MC: Selected information from Brook Corporations accounting records and financial statements for 2019...

See similar textbooks

Similar questions

Refer to the information for Cornett Company above. What amount should Cornett report on its statement of cash flows as net cash flows provided by investing activities? a. $(5,200) b. $55,200 c. $144,800 d. None of these
Determining Cash Flows from Financing Activities Solomon Construction Company reported the following amount on its balance sheet at the end of 2019 and 2018 for notes payable: Required: 1. If Solomon did not repay any notes payable during 2019, determine how much cash Solomon received from the issuance of notes payable. 2. If Solomon repaid $40,000 of notes payable during 2019, determine what amounts Solomon would report in the financing activities section of the statement of cash flows.
Use the following information from Birch Companys balance sheets to determine net cash flows from operating activities (indirect method), assuming net income for 2018 of $122,000.
(Appendix 21.1) Operating Cash Flows Refer to the information for Lamberson Company in P21-6. Required: 1. Using the direct method, prepare the operating activities section of the 2019 statement of cash flows for Lamberson. 2. (Optional). If you completed P21-6 earlier, prepare the remaining portion of the statement of cash flows. (A separate schedule reconciling net income to cash provided by operating activities is not necessary.)
Spreadsheet and Statement The following 2019 information is available for Stewart Company: Partial additional information: The equipment that was sold for cash had cost 400 and had a book value of 300. Land that was sold brought a cash price of 530. Fifty shares of stock were issued at par. (Appendix 21.1) Operating Cash Flows Spreadsheet Method Refer to the information for Stewart Company in E21-11. Required: Raised only on the information presented and using the direct method, prepare the cash flows from operating activities section of the 2019 statement of cash flows for Stewart using the spreadsheet method.
Selected information from Brook Corporations accounting records and financial statements for 2019 follows: On the statement of cash flows for the year ended December 31, 2019, Brook should disclose a net increase in cash in the amount of: a. 1,700,000 b. 2,400,000 c. 3,700,000 d. 4,200,000
Classification of Cash Flows Rolling Meadows Country Club Inc. is a privately owned corporation that operates a golf club. Rolling Meadows reported the following inflows and outflows of cash during 2019: Rolling Meadows had cash on hand at lllf2019 of $8,500. Required: 1. Prepare a properly formatted statement of cash flows using the indirect method. 2. CONCEPTUAL CONNECTION What can you conclude by examining the patterns in Rolling Meadows cash flows?
Cash Receipts from Customers Singleton Inc. had accounts receivable of $22,150 at January 1, 2019, and $26,850 at December 31, 2019. Net income for 2019 was $125,300 and sales revenue was $1,240,000. Required: Compute the amount of cash collected from customers using the direct method.
Using a Spreadsheet to Prepare a Statement of Cash Flows Jane Bahr, a controller of Endicott & Thurston, prepared the following balance sheets at the end of 2019 and 2018: Required: 1. Using a spreadsheet, prepare a statement of cash flows for 2019. Assume Endicott & Thurston use the indirect method. 2. CONCEPTUAL CONNECTEON Discuss whether Endicott & Thurston appear to have matched the timing of inflows and outflows of cash.
Determining Cash Flows from Investing Activities Burns Companys 2019 and 2018 balance sheets presented the following data for equipment: During 2019, equipment costing $41,000 with accumulated depreciation of $36,700 was sold for cash, producing a $3,200 gain. Required: 1. Calculate the amount of depreciation expense for 2019. 2. Calculate the amount of cash spent for equipment during 2019. 3. Calculate the amount that should be included as a cash inflow from the disposal of equipment.
Preparing a Statement of Cash Flows Volusia Company reported the following comparative balance sheets for 2019: Required: Prepare a statement of cash flows for Volusia using the indirect method to compute net cash flow from operating activities.
Preparing a Statement of Cash Flows Monon Cable Television Company reported the following financial statements for 20l9: Required: 1. Prepare a statement of cash flows using the indirect method to compute net cash flow from operating activities. 2. CONCEPTUAL CONNECTION Explain what has been responsible for the decrease in cash.